SHANGHAI, Feb. 4 (SMM) – LME copper prices increased Tuesday and closed up 3.88% at USD 5,700/mt.

Australia’s central bank cut interest rate by 25 basis points to 2.25%, shoring up the market. Meanwhile, Greek stocks posted the biggest gain since June 2012 as Greece’s finance minister said the country will not ask for a debt write-down.

US stocks rose across the board with investors pondering strong automobile sales data. The euro also rebounded, and the US factory orders for December missed forecast. Thus, the US dollar index fell below 94. Crude oil prices staged a 7% increase.

SHFE most-active copper contract opened at RMB 41,150/mt during night session on Tuesday and rallied after testing a low of RMB 40,800/mt. The prices ended up RMB 810/mt at RMB 41,250/mt. Trading volumes of the most active contract were around 290,000 lots, and positions remained stable.

SHFE 1504 copper contract is expected to trade at RMB 40,800-42,000/mt on February 4. Spot copper will be offered between a discount of RMB 50/mt and a premium of RMB 50/mt to SHFE 1502 copper contract.